Renewable technologies are evolving at a rapid pace and have seen a dramatic decline in the costs associated with its procurement. This provides the opportunity for corporates to reap the benefits of procuring renewable energy directly from generators through the use of a power purchase agreement (corporate PPAs). Corporate PPAs aim to provide corporates with lower or more stable electricity costs and grid reliability and can contribute significantly to their sustainability targets.
Despite these benefits, corporate PPAs have struggled to take off in sub-Saharan Africa, commonly as a result of regulatory challenges. That being said, there are signals that several markets are evolving and opening up the potential for corporate PPAs. More regulators are considering options to change their power markets to favour this energy transition.
Baker McKenzie’s new report, Opportunities for Corporate Procurement of Power in Sub-Saharan Africa unpacks the opportunities, challenges and possible structures of corporate PPAs in Ethiopia, Ghana, Kenya, Namibia, Nigeria, South Africa, Tanzania, Zambia and Zimbabwe. The report is intended to serve as an enabling tool to facilitate the expansion of corporate PPAs in these countries.